About Jet Airways

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The board of Jet Airways (9W, Mumbai Int'l) has approved a restructuring plan wherein a consortium of lenders led by the State Bank of India (SBI) will take a 32% stake in the airline through a debt-for-equity transaction, The Times of India has reported.

The National Investment and Infrastructure Fund (NIIF) will inject a further INR14 billion rupees (USD196 million) and take a 19.5% stake in the carrier. The NIIF is funded by external investors, including the Abu Dhabi Investment Authority but with Indian government guarantees.

The consortium led by the state-owned SBI and the government-backed fund together will thus together own 51.5% of the shares in the airline.

Etihad Airways, which currently controls a 24% stake, will invest another INR14 billion rupees (USD196 million) but will only increase its stake to 24.9%. As a result, it will stay below the threshold of a 25% stake. If it exceeded the threshold, it...

The Indian Directorate General of Civil Aviation (DGCA) has rejected a request by Jet Airways (9W, Mumbai Int'l) to restore extended range twin engined operations certification to B737-8s, The Economic Times has reported. The A320-200neo remains similarly limited.

"We have rejected Jet Airways’ request to relax the Extended Diversion Time Operations (EDTO) limit for Boeing 737 MAX aircraft because we are concerned about the performance of the aircraft, and would like operations to continue with restrictions," a senior DGCA official said.

The authority previously limited both types to operations within 60-minute diversion time, effectively banning their deployment on multiple routes crossing the Bay of Bengal to South-East Asia or the Arabian Sea to the Gulf countries.

The Emirati carrier owns 24% of the airline itself but controls the loyalty programme in which it has a 50.1% stake.

Eithad Airways did not confirm the transaction.

Meanwhile, the talks between Etihad Airways and Jet Airways regarding long-term capital investment and shareholding adjustment have hit a roadblock after the Securities and Exchange Board of India (SEBI) reportedly denied the Emirati carrier the waiver from the requirement to make an open offer. The Business Standard has reported that SEBI said that such a waiver could harm the interests of minority shareholders.

Etihad Airways earlier conditioned its capital injection, which would lead to an increase in the carrier's shareholding in Jet to 40%, from the waiver. Under the Indian law, once any given shareholder crosses a certain threshold, it is then required to make an open offer...

Jet Airways (9W, Mumbai Int'l) founder and Chairman Naresh Goyal has agreed to reduce his stake in the carrier to 22% and step down from the board, paving the way for an Etihad Airways-led restructuring, the Business Standard has reported.

Goyal currently holds a 51% stake. His future role has been a major obstacle in the negotiations with the Emirati carrier, who wanted Goyal and his family members out of any executive positions at Jet Airways.

Following a fresh capital injection, according to the plan Etihad Airways would increase its stake from the current 24% to 40%. A consortium of banks led by the State Bank of India would convert a part of Jet Airways' debts into equity and would consequently hold a 30% stake in the airline.

The airlines are expected to ink a Memorandum of Understanding within days to finalise the deal. Subsequently, Jet Airways' shareholders will have to approve it at a general meeting scheduled for February 21, 2019.